Nasdaq compliance pressure grows as canaan delisting risk resurfaces after fresh minimum bid warning

Regulatory pressure is mounting again on Canaan as the threat of canaan delisting has re-emerged following another warning from the Nasdaq exchange.

Second Nasdaq non-compliance notice in less than a year

Canaan Inc. faces renewed delisting risk after its shares traded below the Nasdaq minimum bid price requirement for the second time in less than a year. The Bitcoin mining hardware maker has seen its stock fall more than 63% over the past 12 months, underscoring persistent market weakness.

The company disclosed the latest setback in a statement last week, confirming receipt of a formal Nasdaq compliance notice timeline tied to Listing Rule 5550(a)(2). Under this rule, a listed company must maintain a closing bid price of at least $1.00 for 30 consecutive business days in order to remain in good standing.

Moreover, Canaan stressed that its American depositary shares will continue to trade on the Nasdaq Global Market during the current compliance period. It added that management plans to monitor the stock closely and take what it described as all reasonable measures to restore compliance with the Nasdaq minimum bid price rule.

Key deadlines and conditions for regaining compliance

Nasdaq has granted Canaan a standard 180-day grace period, giving the company until July 13, 2026, to remedy the deficiency. During this window, the share price must close at or above $1 for at least 10 consecutive trading days, a level last seen before it slipped under the threshold on Nov. 28.

If Canaan fails to meet this requirement by July 13, 2026, the exchange may offer an additional 180-day extension, subject to specific conditions. However, that extra time would likely come with heightened scrutiny of the company’s capital structure, liquidity profile, and realistic prospects for sustained price recovery.

As part of this process, the firm signaled that it could consider a reverse stock split option if necessary to lift the per-share price. That mechanism reduces the total number of outstanding shares, theoretically pushing up the price of each remaining share without changing the company’s overall market capitalization.

Possible delisting process and Nasdaq review

Canaan emphasized that Nasdaq staff will review its plan and decide whether the company can reasonably be expected to cure the deficiency. That said, if exchange officials determine that Canaan is unlikely to regain compliance, or if the company chooses not to pursue a transfer application or make the required representations, Nasdaq may move toward delisting.

In that scenario, the exchange would issue a formal notice stating that the company’s securities are subject to being removed from the Nasdaq Global Market. However, such a step would typically follow an appeals process and potential hearings, giving Canaan another chance to outline corrective measures.

For now, Canaan shares remain weak. On Friday, the stock closed down more than 3.8% at $0.79, meaning it must climb roughly 27% to regain the key $1 threshold and re-enter the compliance range.

Share price history and previous warning

This is not the first time the company has fallen short of Nasdaq’s minimum bid requirement. Back in May, Canaan received a prior non-compliance warning over the same listing rule but subsequently managed to resolve the issue within the allotted timeframe.

Moreover, the earlier recovery was aided by a strong trading rally. Canaan’s stock price surged nearly 25% to reach a nine-month high of $2.05 in October after it announced its largest avalon a15 pro order in more than three years, signaling fresh demand for its mining equipment.

Despite that rebound, the canaan stock price decline resumed in the following months, erasing most of those gains. The renewed pressure underscores how vulnerable smaller crypto infrastructure players remain to market cycles, regulatory constraints, and shifting investor sentiment.

Sector headwinds weigh on Bitcoin miners

The latest compliance challenges arrive at a difficult time for the broader crypto mining industry. Bitcoin-mining companies such as Canaan have struggled since the most recent Bitcoin halving, which cut block rewards and compressed revenue streams across the sector.

At the same time, Bitcoin’s underwhelming price performance over the past few months has further squeezed cash flows. As a result, many operators have been forced to run on very thin or even negative profitability, reflecting mounting bitcoin miners margin pressure in a more competitive landscape.

Furthermore, Canaan is not the only crypto-linked business attracting closer attention from major exchanges. Last month, Kindly MD, which focuses on managing a Bitcoin treasury, received a similar Nasdaq warning after its shares traded below the minimum bid price requirement, highlighting how exchange rules continue to bite smaller digital-asset firms.

Outlook for Canaan and its investors

Looking ahead, investors will be watching both operational performance and market conditions to gauge whether Canaan can satisfy the current compliance deadlines and avoid another escalation in the canaan delisting process. Much will depend on Bitcoin’s price trajectory, demand for mining hardware, and the company’s capital management strategy.

If the firm succeeds in lifting its share price above $1 for the required period, it could stabilize its listing status and buy more time to execute its business plan. However, failure to do so by the key July 13, 2026, date could push Nasdaq to intensify its review and potentially move closer to a formal delisting decision.

In summary, Canaan remains under pressure from both market forces and exchange regulations, with the coming months likely to prove decisive for its listing future and for shareholders tracking the stock’s next move.